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Fitch Ratings affirms CEB rating at AA+

10 September 2018

PARIS - On 5 September 2018, Fitch Ratings affirmed the CEB’s Long-Term Issuer Default Rating (IDR) at AA+ with a stable outlook. The Short-Term IDR remains at ‘F1+’.

Fitch Ratings key drivers for its excellent rating at AA+, outlook stable on the CEB are as follows:

  • Strong solvency
  • Excellent liquidity
  • Low-risk business environment

CEB’s strong asset quality track record has been highlighted by the rating agency, therefore improving its assessment of CEB’s preferred creditor status. This improvement has had a direct impact on the appraisal of the credit quality of the CEB, being one of the strongest among multilateral development banks.

In the recent years, the liquidity has been optimised by CEB in order to improve its leverage. CEB’s liquidity remains a key rating strength in Fitch’s view, receiving the best endorsement.

CEB’s capitalisation has also been put to the fore, expressed by the equity-to-adjusted-asset ratio and the leverage ratio. These two components have improved in the past years and draw near the border of the uplift factor.

Fitch Ratings press release

5 September 2018

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Set up in 1956, the CEB (Council of Europe Development Bank) has 41 member states. Twenty-two Central, Eastern and South Eastern European countries, forming the Bank's target countries, are listed among the member states. As a major instrument of the policy of solidarity in Europe, the Bank finances social projects by making available resources raised in conditions reflecting the quality of its rating (Aa1 with Moody's, outlook stable, AA+ with Standard & Poor's, outlook positive and AA+ with Fitch Ratings, outlook stable). It thus grants loans to its member states, and to financial institutions and local authorities in its member states for the financing of projects in the social sector, in accordance with its Articles of Agreement.

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